-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Wzuv4mnljpC636ZL3qsk567qc9YK7xV+cN51zmqGtJKLEss9QphdT9QqTCchoNkn kxakT72KevzKyre1j69otA== 0000025445-98-000019.txt : 19981125 0000025445-98-000019.hdr.sgml : 19981125 ACCESSION NUMBER: 0000025445-98-000019 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRANE CO /DE/ CENTRAL INDEX KEY: 0000025445 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-LUMBER, PLYWOOD, MILLWORK & WOOD PANELS [5031] IRS NUMBER: 131952290 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: SEC FILE NUMBER: 033-22904 FILM NUMBER: 98758456 BUSINESS ADDRESS: STREET 1: 100 FIRST STAMFORD PLACE CITY: STAMFORD STATE: CT ZIP: 06902 BUSINESS PHONE: 2033637300 10-Q/A 1 AMENDMENT #1 TO FORM 10Q FORM 10-Q/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 1998 Commission File Number 1-1657 CRANE CO. (Exact name of registrant as specified in its charter) Delaware 13-1952290 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 100 First Stamford Place, Stamford, CT. 06902 (Address of principal executive office) (Zip Code) (203) 363-7300 (Registrant's telephone number, including area code) (Not Applicable) (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of shares outstanding of the issuer's classes of common stock, as of October 31, 1998: Common stock, $1.00 Par Value - 68,624,818 shares Part I - Financial Information The company hereby amends Part 1, Item 1, as set forth herein, of its Quarterly Report on Form 10Q filed with the Securities and Exchange Commission on November 13, 1998. The Cost in excess of net assets acquired balances were transposed when transmitted. The 10Q shows the Cost in excess of net assets acquired to be $220,563 (for 9/30/98), $368,437 (for 9/30/97) and $216,497 (for 12/31/97). The Cost in excess of net assets acquired should be $368,437 (for 9/30/98), $216,497 (for 9/30/97) and $220,563 (for 12/31/97). Therefore Item 1, Financial Statements, has been amended. Item 1. Financial Statements Crane Co. and Subsidiaries Consolidated Statements of Income (In Thousands, Except Per Share Amounts) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1998 1997 1998 1997 ---- ---- ---- ---- Net Sales $595,438 $534,818 $1,685,655 $1,520,915 Operating Costs and Expenses: Cost of Sales 426,946 391,023 1,210,772 1,104,977 Selling, general and Administrative 89,439 75,351 252,666 228,072 Depreciation and amortization 15,816 14,175 44,335 41,351 --------- --------- ----------- ----------- 532,201 480,549 1,507,773 1,374,400 Operating Profit 63,237 54,269 177,882 146,515 Other Income (Expense): Interest income 477 729 1,851 1,809 Interest expense (7,182) (6,046) (19,456) (17,989) Miscellaneous - net (14) (56) (228) 177 --------- --------- ----------- ----------- (6,719) (5,373) (17,833) (16,003) Income Before Taxes 56,518 48,896 160,049 130,512 Provision for Income Taxes 19,743 17,496 56,817 47,244 --------- --------- ----------- ----------- Net Income $ 36,775 $ 31,400 $ 103,232 $ 83,268 ========= ========= =========== =========== Net Income Per Share: Basic $.54 $.46 $1.51 $1.21 Diluted .53 .45 1.49 1.20 Average Basic Shares Outstanding 68,670 68,844 68,543 68,619 Average Diluted Shares Outstanding 69,407 69,737 69,415 69,416 Dividends Per Share $.10 $.08 $.27 $.25 See Notes to Consolidated Financial Statements
-2- Part I - Financial Information Item 1. Financial Statements Crane Co. and Subsidiaries Consolidated Statements of Comprehensive Income (In Thousands) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1998 1997 1998 1997 ---- ---- ---- ---- Net Income $36,775 $31,400 $103,232 $83,268 Other comprehensive income, net of tax- Foreign currency translation adjustments 164 (1,769) (4,127) (7,013) ------- -------- --------- -------- Comprehensive Income $36,939 $29,631 $ 99,105 $76,255 ======= ======== ========= ======== See Notes to Consolidated Financial Statements
-3- Part I - Financial Information Item 1. Financial Statements Crane Co. and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Per Share Amounts) (Unaudited)
September 30, December 31, 1998 1997 1997 Assets Current Assets Cash and cash equivalents $ 16,448 $ 21,863 $ 6,982 Accounts receivable 323,681 272,817 272,262 Inventories: Finished goods 144,778 110,069 113,496 Finished parts and subassemblies 53,745 45,940 46,351 Work in process 48,374 45,003 51,345 Raw materials 90,337 71,243 79,892 ---------- ---------- ---------- 337,234 272,255 291,084 Other current assets 44,319 32,509 37,425 ---------- ---------- ---------- Total Current Assets 721,682 599,444 607,753 Property, Plant and Equipment: Cost 640,398 574,943 582,704 Less accumulated depreciation 334,002 309,813 308,947 ---------- ---------- ---------- 306,396 265,130 273,757 Other Assets 54,957 54,630 55,114 Intangibles 50,267 52,961 51,907 Cost in excess of net assets acquired 368,437 216,497 220,563 ---------- ---------- ---------- $1,501,739 $1,188,662 $1,209,094 ========== ========== ========== See Notes to Consolidated Financial Statements
-4- Part I - Financial Information Item 1. Financial Statements Crane Co. and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Per Share Amounts) (Unaudited)
September 30, December 31, 1998 1997 1997 Liabilities and Shareholders Equity Current Liabilities Current maturities of long-term debt $ 825 $ 1,063 $ 992 Loans payable 53,070 16,296 30,240 Accounts payable 147,202 125,232 122,616 Accrued liabilities 142,556 117,502 128,794 U.S. and foreign taxes on income 22,258 8,986 13,170 ----------- ----------- ----------- Total Current Liabilities 365,911 269,079 295,812 Long-Term Debt 403,670 266,916 260,716 Deferred Income Taxes 47,752 55,951 46,007 Other Liabilities 28,818 26,551 25,618 Accrued Postretirement Benefits 40,665 42,106 41,838 Accrued Pension Liability 6,540 6,202 6,559 Preferred Shares, par value $.01 - - - 5,000,000 shares authorized Common Shareholders Equity: Common Shares, par value $1.00 68,625 68,819 68,313 120,000,000 shares authorized, 68,624,818, 68,818,704 and 68,312,730 shares outstanding Capital surplus 15,283 31,396 19,951 Retained earnings 545,152 436,023 460,830 Accumulated other comprehensive income (20,677) (14,381) (16,550) ----------- ----------- ----------- Total Common Shareholders Equity 608,383 521,857 532,544 $1,501,739 $1,188,662 $1,209,094 =========== =========== =========== See Notes to Consolidated Financial Statements
-5- Part I - Financial Information (Cont'd.) Item 1. Financial Statements Crane Co. and Subsidiaries Consolidated Statements of Cash Flows (In Thousands) (Unaudited)
September 30, 1998 1997 Cash flows from Operating activities: Net income $103,232 $ 83,268 Depreciation 28,551 27,622 Amortization 15,784 13,729 Deferred income taxes (169) (220) Cash used for operating working capital (10,349) (12,250) Other (3,786) (4,310) --------- --------- Total provided by operating activities 133,263 107,839 Cash flows used for Investing activities: Capital Expenditures (42,608) (31,049) Payments for acquisitions (225,394) (36,107) Proceeds from divestitures 4,276 - Proceeds from disposition of capital assets 774 4,457 --------- --------- Total used for investing activities (262,952) (62,699) Cash flows from Financing activities: Equity: Dividends paid (18,331) (17,170) Reacquisition of shares-open market (6,323) (4,857) Reacquisition of shares-stock incentive programs (10,922) (4,383) Stock options exercised 8,633 6,390 --------- --------- Net Equity (26,943) (20,020) Debt: Proceeds from issuance of long-term debt 143,565 - Repayments of long-term debt (943) (3,461) Net increase (decrease) in short-term debt 22,758 (10,710) --------- --------- Net Debt 165,380 (14,171) --------- --------- Total provided by (used for) financing activities 138,437 (34,191) Effect of exchange rate on cash and cash equivalents 718 (665) --------- --------- Increase in cash and cash equivalents 9,466 10,284 Cash and cash equivalents at beginning of period 6,982 11,579 --------- --------- Cash and cash equivalents at end of period $ 16,448 $ 21,863 ========= ========= Detail of Cash Provided by (Used for) Operating Working Capital (net of effects of acquisitions) Accounts Receivable $(22,430) $(34,055) Inventories (14,560) (1,650) Other current assets (2,413) 1,488 Accounts Payable 13,991 19,747 Accrued Liabilities 4,638 105 U.S. and foreign taxes on income 10,425 2,115 --------- --------- Total $(10,349) $(12,250) ========= ========= Supplemental disclosure of cash flow information: Interest paid $ 17,921 $ 16,963 Income taxes paid 43,388 39,876 See Notes to Consolidated Financial Statements
-6- Part I - Financial Information (Cont'd.) Notes to Consolidated Financial Statements (Unaudited) 1. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim period presented. Certain prior year amounts have been reclassified to conform to the 1998 presentation. These interim consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements in the company's Annual Report on Form 10-K for the year ended December 31, 1997. 2. Sales and operating profit by segment are as follows:
Three Months Ended Nine Months Ended September 30, September 30, 1998 1997 1998 1997 ---- ---- ---- ---- (In thousands) Net Sales: Fluid Handling $108,010 $100,460 $ 339,108 $ 290,734 Aerospace 102,458 85,866 297,410 252,878 Engineered Materials 72,992 56,841 198,373 171,817 Crane Controls 32,294 32,821 102,514 98,149 Merchandising Systems 49,039 44,271 145,052 137,095 Wholesale Distribution 230,857 213,743 604,187 568,885 Other 3,108 3,675 9,984 10,071 Intersegment Elimination (3,320) (2,859) (10,973) (8,714) --------- --------- ----------- ----------- Total $595,438 $534,818 $1,685,655 $1,520,915 ========= ========= =========== =========== Operating Profit (Loss): Fluid Handling $ 2,969 $ 8,927 $ 18,693 $ 22,454 Aerospace 31,679 22,903 88,212 64,596 Engineered Materials 10,979 7,993 28,224 22,689 Crane Controls 2,277 3,353 8,254 8,560 Merchandising Systems 8,244 6,577 26,655 24,445 Wholesale Distribution 12,418 9,015 24,547 18,868 Other (212) 230 (438) 753 Corporate (5,132) (4,724) (16,268) (15,998) Intersegment Elimination 15 (5) 3 148 -------- -------- --------- --------- Total $63,237 $54,269 $177,882 $146,515 ======== ======== ========= =========
-7- Part I - Financial Information (Cont'd.) Notes to Consolidated Financial Statements 3. Inventories Inventories are stated at the lower of cost or market, principally on the last-in, first-out (LIFO) method of inventory valuation. Replacement cost would be higher by $47.6 million at September 30, 1998, $52.1 million at September 30, 1997, and $46.6 million at December 31, 1997. 4. Intangibles Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range form five to twenty years. Accumulated amortization was $21.7 million at September 30, 1998, $17.4 million at September 30, 1997 and $18.5 million at December 31, 1997 5. Cost in Excess of Net Assets Acquired Cost in excess of net assets acquired is amortized on a straight- line basis principally over a 15 to 40 years. Accumulated amortization was $45.9 million at September 30, 1998, $35.2 million at September 30, 1997 and $37.4 million at December 31, 1997. 6. Disclosure of Accumulated Other Comprehensive Income Balances The company adopted Statement of Financial Accounting Standards No. 130 "Reporting Comprehensive Income" on January 1, 1998. Comprehensive Income is the change in equity of a business enterprise during a period from transactions and other events and circumstances, from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and dispositions to owners. Activity for the period is as follows:
Accumulated Other Comprehensive Income Accumulated other comprehensive income January 1, 1998 $(16,550) Foreign currency translation adjustment 108 --------- Accumulated other comprehensive income March 31, 1998 (16,442) Foreign currency translation adjustment (4,399) --------- Accumulated other comprehensive income June 30, 1998 (20,841) Foreign currency translation adjustment 164 --------- Accumulated other comprehensive income September 30, 1998 $(20,677) =========
-8- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CRANE CO. REGISTRANT Date November 24, 1998 By /s/ D.S. Smith ----------------- ---------- D.S. SMITH Vice President and Chief Financial Officer Date November 24, 1998 By /s/ M.L. Raithel ----------------- ------------ M.L. RAITHEL Controller -9- -----END PRIVACY-ENHANCED MESSAGE-----